What Does Digital Business Transformation Mean to Us?
Updated: Feb 10, 2020
Authored by: TG Marketing
These days it’s rare to find a company that doesn’t have some type of digitization underway to reduce costs and improve operations. The new challenge for companies is digital transformation. I like the way MIT’s Jeanne Ross describes the distinction: “A digital transformation involves rethinking the company’s value proposition, not just its operations.”
Digital transformation is about moving your business into a position where the products and services you offer and how you offer them embrace modern technology and the way people want to consume them today. For those organizations that may have matured before the digital age began, digital business transformation can be very disruptive.
WHY NOW IS THE TIME
Inherently, the reason to consider digital transformation is the risk of being left behind. Digital disruption has caused more than half (52%) of former Fortune 500 companies to go bankrupt, be swallowed by an acquisition or simply disappear since 2000. Today, the forces influencing business competition are stronger than ever:
Fixed, "good for the company" ways of doing business are no longer satisfying consumers.
The "three Vs" of data, and accessibility of analytics to harness it, means competitors of all sizes can gain insight and respond to the marketplace much faster and with more precision.
Companies compete for the same consumer segment, and that segment’s buying behavior is changing as consumer demographics change.
Globalization has challenged traditional rules of competition. In addition, Government-sponsored companies in China, Russia and other nations are doing business with a different playbook.
TO CHANGE OR NOT TO CHANGE
Market position can influence business decisions about when and how to embark on the digital transformation journey.
Organizations in second, third place or farther behind in the marketplace are looking to gain market share, while the dominant segment players are too busy working to perserve their success, in many cases doubling down on 'what made them great.' If they drive forward with that plan for too long, they topple.
Digital transformation is not only the key strategy for marketplace leadership; it's simple survival.
THE DIGITAL TRANSFORMATION TRIAD
Digital transformation starts with a strategy, objectives and a plan developed at the leadership level. This roadmap has three elements at its core:
The business process transformation required to meet goals
The technology transition required to support process change
Investments in the existing and future workforce to support process and technology transformation, as well as the strategic plan for managing change and creating a digital culture
A BLUEPRINT FOR CHANGE
At TG, we approach our clients’ digital transformation as change agents. Our work is the confluence of business strategy and process, and technology transition.
Our expertise is in helping clients manage the alignment of strategy and technology, while building a roadmap for execution around core focus areas designed to deliver maximum impact - quickly.
We do this by helping clients design and own a “blueprint” for change. Its a team sport:
business leadership must drive faster insights, while rationalizing technology investments with a bias for innovation
tech leaders and partners must leverage Cloud service models, and work to automate holistic integration across the entire business ecosystem
WHAT’S KILLING YOUR BUSINESS?
We’ve found that organizations concentrate on different cores and need to sequence these steps in sync with their specific business challenges. In addition, larger organizations have more stakeholders driving multiple priorities, which also influences the order and emphasis in implementation. The common theme across all successful digital transformation though, is the integration of these steps across the enterprise.
DIGITAL TRANSFORMATION GOES BEYOND IT
In the digital age, technology is the power that drives business. Its reach extends well beyond the operations of IT teams. If you’d like to explore concrete steps that will take your organization down the path to digital transformation, please contact us. We’d like to understand your pain points, and can share insights that will help you succeed.